AfDB pushes AI-enabled fintech to deepen financial inclusion, lift GDP by $1tn

Africa’s artificial intelligence drive could unlock up to $1 trillion in additional GDP by 2035, according to a new report by the African Development Bank (AfDB), positioning AI as a central pillar of the continent’s productivity and growth strategy.

The report, Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth, and Inclusive Transformation, outlines how AI adoption can lift output across key sectors by improving labour efficiency rather than displacing jobs. Agriculture, fintech, healthcare, logistics, manufacturing, and public services are identified as high-impact areas where AI tools can deliver rapid gains.

According to the report, the AI dividend is expected to be concentrated in select high-impact sectors, rather than spread evenly across Africa’s economy. Analysis identified five priority sectors—agriculture (20%), wholesale and retail (14%), manufacturing and Industry 4.0 (9%), finance and inclusion (8%), and health and life sciences (7%)—which together are projected to capture 58% of the total AI gains, or approximately $580 billion, by 2035. These sectors combine economic size, readiness to adopt AI, and strong potential to deliver inclusive development outcomes.

“We have set out the key actions in this report, identifying the areas where initial implementation should be focused,” said Nicholas Williams, Manager of the ICT Operations Division at the Bank. “The Bank is ready to release investment to support these actions. We expect the private sector and the government to utilize this investment to ensure we achieve the identified productivity gains and create quality jobs.”

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According to the AfDB, translating AI’s promise into measurable economic value hinges on five interlinked enablers: data, compute, skills, trust, and capital. The bank argues that fragmented data ecosystems, limited computing infrastructure, skills shortages, weak governance frameworks, and underinvestment remain the main bottlenecks to large-scale AI deployment across the continent.

The report was developed under the G20 Digital Transformation Working Group, underscoring Africa’s growing relevance in global digital policy discussions. It frames AI as a leapfrogging opportunity, allowing African economies to bypass traditional development constraints by scaling digital solutions built on mobile connectivity and cloud infrastructure.

From a financial and investment perspective, the AfDB’s projections strengthen the long-term outlook for fintech, digital payments, AI-driven credit scoring, data centres and cloud services, sectors already attracting rising private equity and development finance flows. AI-enabled financial services, in particular, are seen as critical to expanding financial inclusion while improving risk management and capital allocation.

As global competition around AI intensifies, the AfDB’s message is clear: for Africa, AI is no longer a distant aspiration but a near-term economic catalyst—one that could materially reshape productivity, competitiveness, and inclusive growth over the next decade.

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